A Report on Organizational Study and Study of Below the Line Marketing activities of
ING Vysya Bank, Bangalore
Submitted in Partial fulfillment for the award of
Masters in Business Administration of Bangalore University
Submitted by K. Rashmi
Reg. No: 05XQCM6035
Under the Guidance and Supervision of Prof. Nandini Vaidyanathan
M.P.BIRLA INSTITUTE OF MANAGEMENT ASSOCIATES WITH BHARATIYA VIDYA BHAVAN
#43.RACE COURSE ROAD, BANGALORE-560001
2005-07
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M. P. Birla Institute of Management. 2
PRINCIPAL�s CERTIFICATE
This is to certify the internship project report entitled
�AN ORGANISATIONAL STUDY� AT ING VYSYA Bank and the project
titled �Study of Below the Line Marketing activities of ING Vysya Bank�
has been prepared by K. Rashmi bearing the registration No. 05XQCM6035
under the guidance and supervision of Prof. Nandini Vaidyanathan of M. P. Birla
Institute of Management (Associate Bharatiya Vidya Bhavan), Bangalore. This
has not formed the basis for the award of any degree/ diploma for any university.
Place: Bangalore Principal
Date: 07/10/2006 (Dr. N. S. Malavalli)
M. P. Birla Institute of Management. 3
GUIDE�s CERTIFICATE This is to certify that the Internship Project Report entitled
�An Organization Study� at ING Vysya Bank and the project titled �Study of
Below the Line Marketing activities of ING Vysya Bank� done by
K. Rashmi bearing Registration No.05XQCM6035 is a bonafide work done
under my guidance during the academic year 2005-06 in partial fulfillment of the
requirement for the award of MBA degree by Bangalore University. To the best
of my knowledge this report has not formed the basis for the award of any other
degree.
Place: Bangalore Prof. Nandini Vaidyanathan
Date: 07/10/2006
M. P. Birla Institute of Management. 4
Company Certificate
M. P. Birla Institute of Management. 5
DECLARATION
I hereby, declare that this internship report entitled
�An Organization Study� at ING Vysya Bank and the project titled �Study
of Below the Line Marketing activities of ING Vysya Bank� submitted in
partial fulfillment for the award of Master of Business Administration of
Bangalore University is a record of independent work carried out by me under
the guidance of Prof. Nandini Vaidyanathan faculty member, M. P. Birla Institute
of Management Studies, Bangalore.
I also declare that this report is a result of my own effort and has not been
submitted earlier for the award of any degree or diploma of Bangalore University
or any other University.
Place: Bangalore K. Rashmi
Date: 07/10/2006 REGD.NO: 05XQCM6035
M. P. Birla Institute of Management. 6
ACKNOWLEDGEMENT
It is my special privilege to extend words of thanks to all of them who have
helped me and encouraged me in completing the internship successfully.
I owe a special debt of gratitude to Mr. Alok Duggal, Head Marketing &
Projects- Liabilities, ING Vysya House who has been kind enough to permit me
to take up INTERNSHIP STUDY at ING VYSYA BANK LTD. and guide me
constantly throughout my project.
I extend my sincere gratitude to Mr. Vishal Bhan, (HR) ING Vysya House for
giving me the opportunity to do the project at ING Vysya Bank.
I am indebted to my internal guide Prof. Nandini Vaidyanathan for her
encouragement and support for the completion of study.
I extend my sincere gratitude to our Principal Mr. Nagesh Malavalli.
I also wish to express my gratitude to every one who directly and indirectly
helped me through this Internship.
M. P. Birla Institute of Management. 7
Executive summary
The MBA course offered by the Bangalore University has its own unique syllabus which
requires its MBA students to undertake an internship with any of the leading business houses
for a period ranging from 6 weeks to 8 weeks during the second semester. The purpose of this
internship is to enable the students to appreciate and understand the nuances of the practical
world vis-à-vis the theoretical input administered during regular academic sessions. This helps
in creating Managers who are equipped with the experience of linking the theoretical inputs
with those of practical exposure and come out with creative solutions / ideas in enhancing the
business In partial fulfillment of MBA degree of Bangalore University I took up an
Organizational Study at ING Vysya Bank, and a study about its Below the Line Marketing
activities.
The field of consumer behavior studies how individuals, groups and organization select, buy,
use and dispose of goods, services, ideas, or experiences to satisfy their needs and desires. The
banking industry worldwide has been showing steady progress since 2002. In India total asset
size of the retail banking industry grew at a rate of 120% to reach a value of $66 billion in
2005. This growth in retail banking sector has helped in the growth of the overall banking
sector. This Project deals with Organization study of ING Vysya Bank and Study of its Below
the line marketing activities analysis with respect to ING Vysya Bank�. Below the line activity
is loosely classified as non-media advertising. a trade exhibition or a sponsored sports event,
this is referred to as �below the line� activity. BTL is necessary
When Buyer awareness of the product is low and When Industry sales are rising rather than
remaining stable or declining and when The product has features which are not obvious to the
buyer and when ever the opportunities for product differentiation are strong., And when ever a
new product or a service is launched.
M. P. Birla Institute of Management. 8
Contents
S. No Page No. Part A
1 About ING Vysya Bank 10 2 Milestones 11 3 Vision 12 4 Introduction to Indian banking system 13 5 Origin of ING Group 14 6 Performance of Bank over decades 16 7 ING Vysya reach and coverage in India 8. Organization structure 20 9. Functional departments 25
10. Practices followed by branches 39 11. Financial results 40 12. Other key Initiatives 47 13. SWOT analysis 48
Part B 49 14 Topic- Study of Below the Line Marketing activities
of ING Vysya Bank
50
16. Objectives and Limitations of the study 51 17. Industry profile- Retail banking 52 18. Forms of advertising and their advantages and
disadvantages 55
19. Marketing communication process 57 20. Difference between Above the Line and Below the line 58 21 Various Products for which BTL is done 59 22 Regions where BTL activity has been done 71 23 Sales Process 78 24 Tangible benefits 79 25 Recommendations 80 26 Bibliography 81
M. P. Birla Institute of Management. 9
Part A About ING Vysya Bank
M. P. Birla Institute of Management. 10
ING Vysya Bank Ltd., is an entity formed with the coming together of erstwhile, Vysya Bank
Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse, ING of
Dutch origin, during Oct 2002.
The origin of the erstwhile Vysya Bank was pretty humble. It was in the year 1930 that a team
of visionaries came together to found a bank that would extend a helping hand to those who
weren't privileged enough to enjoy banking services.
It's been a long journey since then and the Bank has grown in size and stature to encompass
every area of present-day banking activity and has carved a distinct identity of being India's
Premier Private Sector Bank.
In 1980, the Bank completed fifty years of service to the nation and post 1985; the Bank made
rapid strides to reach the coveted position of being the number one private sector bank. In
1990, the bank completed its Diamond Jubilee year. At the Diamond Jubilee Celebrations, the
then Finance Minister Prof. Madhu Dandavate, had termed the performance of the bank
'Stupendous'. The year of 2005 was the 75th anniversary or Platinum Jubilee year.
M. P. Birla Institute of Management. 11
Milestones of the Bank 1930 Set up in Bangalore 1948 Scheduled Bank 1985 Largest Private Sector Bank 1987 The Vysya Bank Leasing Ltd. Commenced 1988 Pioneered the concept of Co branding of Credit Cards 1990 Promoted Vysya Bank Housing Finance Ltd. 1992 Deposits cross Rs.1000 crores 1993 Number of Branches crossed 300
1996 Signs Strategic Alliance with BBL., Belgium. Two National Awards by Gem & Jewellery Export Promotion Council for excellent performance in Export Promotion
1998
Cash Management Services, & commissioning of VSAT. Golden Peacock Award - for the best HR Practices by Institute of Directors. Rated as Best Domestic Bank in India by Global Finance (International Financial Journal - June 1998) State -of - the -art Date Centre at ITPL, Bangalore.
2000 RBI clears setting up of ING Vysya Life Insurance Company 2001 ING-Vysya commenced life insurance business.
2002
The Bank launched a range of products & services like the Vys Vyapar Plus, the range of loan schemes for traders, ATM services, Smartserv, personal assistant service, Save & Secure, an account that provides accident hospitalization and insurance cover, Sambandh, the International Debit Card and the mi-b@nk net banking service.
2002 ING takes over the Management of the Bank from October 7th , 2002
2002 RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of 17.12.02
2003 Introduced customer friendly products like Orange Savings, Orange Current and Protected Home Loans
2004 Introduced Protected Home Loans - a housing loan product
2005 Introduced Solo - My Own Account for youth and Customer Service Line � Phone Banking Service
2006 Saral Savings - No Frills Account for the common man
Vision
M. P. Birla Institute of Management. 12
INTRODUCTION TO INDIAN BANKING SYSTEM
M. P. Birla Institute of Management. 13
The effective growth in Indian economy indicates the efficient banking system in India. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors.
For the past three decades India�s banking system has several outstanding achievements to its
credit .The Indian banking system has a large geographic and functional coverage
HISTORY:
The first bank in India, through conservative, was established in 1786. From 1780 till today,
the journey of the Indian banking system can be segregated into three distinct phases. They are:
1. Early phase from 1786 to 1969 of Indian bank.
2. Nationalization of Indian bank and upto1991 prior to Indian banking sector reforms.
3. New phase of Indian banking system with the formulation of Indian financial &
banking sector reforms after 1991.
The origin of ING Group
On the other hand, ING group originated in 1990 from the merger between Nationale �
M. P. Birla Institute of Management. 14
Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Groep NV.
Combining roots and ambitions, the newly formed company called �Internationale
Nederlanden Group�. Market circles soon abbreviated the name to I-N-G. The company
followed suit by changing the statutory name to �ING Group N.V.�.
Profile
ING has gained recognition for its integrated approach of banking, insurance and asset
management. Furthermore, the company differentiates itself from other financial service
providers by successfully establishing life insurance companies in countries with emerging
economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another
specialization is ING Direct, an Internet and direct marketing concept with which ING is
rapidly winning retail market share in mature markets. Finally, ING distinguishes itself
internationally as a provider of �employee benefits�, i.e. arrangements of non wage benefits,
such as pension plans for companies and their employees.
Mission
ING`s mission is to be a leading, global, client-focused, innovative and low-cost provider of
financial services through the distribution channels of the client�s preference in markets where
ING can create value.
The New identity
The immediate benefit to ING Vysya Bank ltd is the pride of having become a member of
M. P. Birla Institute of Management. 15
global financial services giant, with an asset base of 1159 billion euros (Rs.6490 thousand
crores), net profit of 72.10 billion euros (Rs 40.76 thousand crores) as of December 31st 2005.
Further, the presence of the group in over 50 countries, employing over 117000 people, serving
over 60 million customers across the globe, only multiplies the credibility, not only across the
country but also across the globe. The pride of this global identity, the back up of a financial
power house and the status of being the first Indian International bank, would also greatly
enhance productivity, profitability resulting in improved performance for the bank to translate
into higher returns, to all the stake holders.
1 Euro = Rs.56/- (Approx.) PERFORMANCE OF BANK OVER DECADES
M. P. Birla Institute of Management. 16
In terms of pure numbers, the performance over the decades can be better
appreciated from the following table:
Year
Net
worth Deposits Advances Profits Outlets
1940 0.001 0.4 0.4 0.001 4
1950 1.4 5.3 3.8 0.09 16
1960 1.6 20.1 13.5 0.13 19
1970 3 91.5 62.8 0.74 39
1980 11.5 1414.3 813.7 1.13 228
1990 162.1 8509.4 4584.8 50.35 319
2000 5900 74240 39380 443.1 481
2001 6527 81411.1 43163.1 371.9 484
2002 6863.24 80680 44180 687.5 483
2003 7067.9 91870 56120 863.5 456
2004 7473.2 104780 69367.3 590.01 523
2005 7094 125693.1 90805.9 -381.8 536 2006 1019.67 133350 102320 90.6 575
* Outlets comprises of 374 branches, 57 ECs, 28 Satellite Offices and 101 ATMs. Additionally
bank also has Internet Banking � mi-b@nk and Customer Service Line for Phone Banking
Service.
No of Outlets
M. P. Birla Institute of Management. 17
0
100
200
300
400
500
600
2001 2002 2003 2004 2005 2006
Outlets
Deposits and advances
0
20000
40000
60000
80000
100000
120000
140000
2001 2002 2003 2004 2005 2006
Deposits
Advances
Net worth
M. P. Birla Institute of Management. 18
0
1000
2000
3000
4000
5000
6000
7000
8000
2001 2002 2003 2004 2005 2006
Networth
ING Vysya reach and coverage in India
M. P. Birla Institute of Management. 19
ING ING VysyaVysya Reach and Coverage in Reach and Coverage in IndiaIndia
.
......
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.................. ....
.
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.....
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. ... ... .....
........ ...
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. ......... ............... ... ......... ..... .........
. .....
.... ......... .....
.
.
.
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.. ..
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.South is our Home� ING Vysya House�
Karnataka
Andhra
Pradesh
Tamil
NaduKerala
Maharashtra
Orissa
Goa
Madhya Pradesh
Gujarat
Rajasthan
UttarPradesh
Bihar
Punjab
West Bengal
Delhi
Haryana
..
Organization Structure
Board
M. P. Birla Institute of Management. 20
WB : Wholesale banking
C&IB : Coroprates and Investment banking
Audit Secretarial
DIST & MKTG
Products & Sales
SME
ASB SBU
RCEOs N & E
RCEOs SeAP
RCEOs AP
RCEOs WEST
C & IB
Bank & FGs
Emerging Corporates
HNI Treasury
Backoffice
Derivatives
Finance & A/Cs
HR Legal CRM CAPU CMS IT
Credit Risk
Market Risk
Call centre
M. P. Birla Institute of Management. 21
HNI : High Networth Individual
SME : Small and Medium Enterprise
CRM : Credit Risk Management
ASB : Agricultural and Social banking
CAPU : Credit Asset Processing Unit
CMS : Cash Management Service
IT : Information Technology
HR : Human Resource
Wholesale banking structure
MD & CEO
M. P. Birla Institute of Management. 22
Regional CEO Wholesale Banking Wilfred Nagel Regional Head of Corporate Clients Malcolm Brown
Marketing department structure
Country Head
Corporate and investment Banking
Bank & FIs Head
Emerging Corporate Head
Clients Products
Client Coverage Head-India (TBA)
Western & Eastern India
Northern India
Southern India
GL Credit Products Head
Structured Finance Head
Trade Finance Marketing
Cash Management
Investment Banking
Local Debt Products
Credit Admin
Western India
Northern India
Eastern India
Chennai / Kerala
Andhra Pradesh
Karnataka
M. P. Birla Institute of Management. 23
Retail Banking Structure
CEO
RETAIL COUNTRY
HEAD
DISTRIBUTION AND MARKETING HEAD
MARKETING
BRANDING BTL CAMPAIGN MANAGEMENT
CORPORATE COMMUNICATIONS
M. P. Birla Institute of Management. 24
Functional Units
MD & CEO
RCEOs
Regional Head
Branch Manager
Branch Ops manager
Branch Associate
M. P. Birla Institute of Management. 25
In order to have a focused approach in exploiting the business opportunities in various business
segments, the bank has constituted these business units
1. Retail banking
2. NRI banking services
3. Whole sale banking
4. Financial markets
1. Retail banking
a. Accounts and deposits.
b. Loans
c. Wealth management
d. Cards
e. Payment services
f. Private banking
g. Small and medium enterprises
h. Agricultural and social banking
a. Accounts and deposits.
ING Vysya Bank has a portfolio of banking solutions and a range of offerings for people from
all walks of life, whether they require a simple savings account or a sound banking partner.
1. Savings Accounts
Orange savings account
Mpower corporate salary account
Solo savings accounts
Saral savings account
2. Current accounts
M. P. Birla Institute of Management. 26
Orange current account
Advantage current account
General current account
3. Term deposits
Fixed deposit
Cumulative deposits
Akshaya deposit
4. Demat Account
The ING Vysya Bank Demat Account offers a secure and convenient way to keep track of
shares and investments, how much you've bought and sold over a period of time, without the
hassle of handling physical documents that get mutilated or lost in transit.
b. Loans
Personal Loan
Home Loan
Home Equity Loan
NRI Home Loan
c. Wealth Management
ING Vysya Bank, through its 100% subsidiary ING Vysya Financial Services (IVFS) caters to
the investment needs of retail individual investors, small & medium enterprises, corporates,
trusts and associations. Their Wealth Management services provide a full spectrum of
integrated financial services to our clients who get access to an array of investment avenues
like Insurance, Mutual Funds and Government of India Bonds.
Investment products
M. P. Birla Institute of Management. 27
1. Mutual Funds
As a distributor of Mutual Funds, they have tied up with almost all the Asset
Management Companies thereby assisting the clients to invest in mutual fund schemes, which
meet with their investment requirements
2. Life Insurance
ING Vysya Financial Services is actively engaged in selling ING Vysya Life Insurance
products ING Vysya Life Insurance provides a range of products including endowment,
pension & unit linked plans.
More details on ING Vysya Life Insurance products are available at the link
www.ingvysyalife.com
3. Government of India and tax savings bonds
Their clients can invest through them in 8% Government of India bonds as well as in tax
savings bonds like REC, NHAI and NHB.
d. Cards
ING Vysya Bank's Credit and Debit Cards give convenient access to our account at any place
and any time.
1. Credit card
Their International Credit Card is accepted at 30 million establishments worldwide! This card
also entitles to a reduced service charge on cash withdrawals from ATMs & no petrol
transaction fee
2. Debit card
The ING Vysya Bank's International Debit Card, powered by MasterCard,. This card lets you
access your bank account from anywhere, any time through a wide range of ATM networks
and use at merchant establishments for purchases
e. Payment services
M. P. Birla Institute of Management. 28
This feature is to make payments conveniently and promptly with Demand Drafts, Pay
Orders, and Payable at Par cheques, Telegraphic Transfers and the RTGS scheme.
1. Bill Pay
This is their payment service - Bill Pay. With this facility customers will never have to go
through queues to pay their bills. All they need to do is instruct the bank and the bill amounts
will be deducted from their account.
2. Smartserv
Smartserv is a comprehensive personal assistance service brought by ING Vysya Bank in
association with Les Concierges. Designed exclusively for customers of ING Vysya Bank,
Smartserv runs day-to-day errands and completes mundane chores. This facility is available
free of charges with the Orange Savings account.
f. Private Banking
The Private Banking Program offered through ING Vysya Bank is an exclusive Wealth
Management Service offered to a select group of individuals and institutions with a minimum
portfolio size of Rs.50 lakhs and above.
ING was the first bank to offer private banking services in the country and is amongst the top
20 banks worldwide offering private banking services* ING Private Banking is a global
network of over 2000 private banking professionals, managing 55 Billion euros for their clients
in 15 countries, ING Vysya Bank combines sound investment philosophy, total transparency
and a comprehensive range of products and services to give customers an end-to-end solution
to all their wealth management needs.
ING Vysya Bank Private Banking aims to give the best advice on your portfolio by giving
customized solutions and exclusive client management. The 3-stage process followed by their
wealth managers is:
Wealth Creation
Wealth Preservation
Wealth Transmission
M. P. Birla Institute of Management. 29
g. Small & Medium Enterprises
ING Vysya Bank has a track record of serving SME Customers for over 75 years. They
understand how much of hard work goes into establishing a successful SME and that
establishing and running a successful business takes hard work, money and planning. ING
Vysya Bank looks not only at immediate banking requirement, but also the long-term needs of
business as it expands.
Their solutions are designed to meet varying needs. They offer a complete range of banking
services to small & medium sized corporates such as Business Accounts, Working capital,
Cash Management Services, Trade Finance, Other Non Funded Facilities and Term Loans for
Business Expansion. In addition they also offer specific structured products to SSI's, Traders,
Distributors and other SME customer
1. Business Loans - MPower Business Loans Trade
Small business entrepreneurs often encounter problems regarding finance. ING Vysya Bank
presents a unique banking loan, specially customized for Small & Medium Business
Enterprises.
These loans are available for Small Business Entrepreneurs, Retailers, Shop
owners, Contractors, Commission Agents and Transport Operators as well as practicing
professionals like Doctors, Lawyers, Consultants, Women Entrepreneurs and any others with a
credit requirement ranging from Rs. 5 lakhs upto Rs. 50 lakhs
2. Business Loans � Rent
The MPower - Rent offers loans against the security of rent receivables. Individuals,
proprietary concerns, partnership firms, public and private limited Companies, trusts and
registered bodies who meet the eligibility criteria will be able to secure fast finance for their
businesses.
3. Business Loans - Small Scale Industries Loans (SSI)
M. P. Birla Institute of Management. 30
ING Vysya Bank offers loans to Small Scale Industries at competitive interest rates without
any collateral security.
Credit Guarantee Fund Trust for Small Industries [CGTSI]
ING Vysya Bank is one of the member lending banks for CGTSI. ING Vysya Bank Ltd offers
loans of up to Rs.25 lakhs to SSI units under CGTSI at competitive interest rates without any
collateral security and / or third party guarantee. In addition the guarantee fee payable to
CGTSI would be debited to the account.
4. MPower Business Account (MBA)
Business Enterprises, Traders, Exim Houses, Wholesalers, Commission Agents, Contractors,
Transport Operators, Professionals and Mid-sized companies including manufacturing /
processing units.
h. Agricultural & Social Banking
1. Term Loans
They have redefined Rural Banking in terms of products and services. Providing a boost to the
potential existing in the rural sector, term loans are categorized into these segments.
Poultry.
Dairy
Wells.
Pump sets.
Tractors/Power Tillers.
Plantation Crops.
Horticulture Crops.
Rural Godowns / Cold storage units.
Rural Housing.
Microfinance Institutions / Self Help Groups
2. Short Term Loans
M. P. Birla Institute of Management. 31
Providing a boost to the potential existing in the rural sector, they provide short term loans to
the rural sector short terms loans are categorized into these segments
KISSAN CREDIT CARD / Crop Loans.
Working Capital Loans to Poultry / Fisheries etc.
Gold Loans for Agriculture / General Purposes.
Produce loans against Warehouse Receipts / against pledge of Stocks of Agri Produce.
2. NRI BANKING SEVICES
They have special banking services and products for Non Resident Indians to help them
Investment in securities/shares and deposits of Indian firms/companies
maintenance of bank accounts in India
Investment in immovable property in India
Investment in Mutual Funds in India
1. Accounts and Deposits
a. Rupee Savings Accounts
This account is for NRIs if they have any investments to be made both on a
repatriable and non-repatriable basis,
NRE savings account
NRO savings accounts
b. Rupee Current Accounts
M. P. Birla Institute of Management. 32
NRE and NRO Rupee Current Accounts that come with a host of convenient Banking
options.
NRE current accounts
NRO current accounts
c. Rupee Fixed Deposits
Deposits in Indian Rupees, which can be fully repatriated at any time. Twin advantages
of affordability and higher earnings�
NRE fixed deposit
NRO fixed deposit
NRE akshaya deposit
NRO akshaya deposit
NRE cumulative deposit
NRO cumulative deposit
d. Foreign Currency Deposits
These deposits are to earn Indian Interest Rates on Foreign Currency deposits with their
Foreign Currency Non-Resident Deposits
FCNR fixed deposit
FCNR akshaya deposit
e. Accounts for Returning Indians
RFC Savings account, Fixed Deposit and Akshaya Deposit allows holding deposits in any
one of four currencies (USD, Pounds Sterling, Euro)
RFC savings accounts
RFC fixed deposit
RFC akshaya deposit
M. P. Birla Institute of Management. 33
2. NRI HOME LOANs
ING Vysya Bank's NRI Home Loans are offered to all NRI's on their return to India for the
purchase, construction, repair/renovation/alteration of a house or a composite loan for self
occupation.
a. Loan Amount - Minimum amount of the loan is Rs.5 Lakhs and Maximum amount is
Rs.100 Lakhs.
3. Remittances - Mi-remit
Mi-remit is a quick and easy way of remitting funds to India. All that is needed to do is
access the internet, choose the mode of transfer and remit funds online. This user-friendly
service saves time and money transferring funds to over 350 locations across in India.
3. Wholesale Banking
Wholesale Banking is a reflection of ING Vysya Bank's ability to provide its corporate
clients in India a full range of commercial, transactional and electronic banking products. The
bank offers a wide array of client-focused corporate banking services, including working
capital finance, trade and transactional services, foreign exchange and cash management.
A well-integrated approach to relationship management and innovative product development
helps the bank achieve the above. The offerings take into account a client's risk profile and
specific needs. The bank has made significant inroads into the formal banking consortia of a
number of Indian companies including multinationals, domestic business houses and prime
public sector companies, based on our superior product delivery, industry benchmark service
levels and strong customer orientation.
a. Credit Products and Structured Finance
The bank understands the importance of providing working capital finance and structured
finance facilities to their clients. Which is why, they have special groups, working on newer,
better ways to help manage money of their clients.
b. Offshore Borrowings
M. P. Birla Institute of Management. 34
With the bank's strong capabilities in lead managing, underwriting and syndicating foreign
currency loan offerings, they excel at external commercial borrowings, particularly offshore
foreign currency loans to large Indian clients. They have two teams
Origination and execution teams based in India
The strong distribution team based in Singapore.
c. Investment Banking, Local Debt Syndication and Securitization
The bank is uniquely positioned to be able to advice, lead manage and place, thus giving the
customer the advantage of being a full fledged Commercial Bank along with investment
banking. As a Category I merchant banker registered with SEBI, the bank has an advanced
product portfolio that includes the following:
Financial advisory services for mergers and acquisitions, capital and debt structuring
and restructuring, private capital raising and structured financing. This includes onshore
as well as offshore
Local debt distribution, both in loan and bond forms, including plain vanilla debt and
structured debt.
Securitization - We advise our clients on securitizing their assets with a view to sell
them. Our services include advisory, structuring portfolios, assist in obtaining ratings
for the portfolios & sell-down of the portfolio.
The investment banking services are provided to a range of Indian as well as offshore clients.
For cross border transactions involving global clients, the investment-banking group works
closely with ING Bank's global corporate finance and investment banking offices
M. P. Birla Institute of Management. 35
d. Trade Finance and Commodities
As an innovative solution provider of international and domestic trade flows of their clients,
they offer an entire range of trade finance products. The product suite, offered in close co-
ordination with the ING global network of structured trade finance units includes documentary
credit, guarantees, bills/ invoices discounting, supply chain financing, pre/post-export finance
and structured trade/commodity finance.
1. Letters of Credit: Letter of credit facilities (inland/ foreign) are provided to the customers
for meeting working capital requirement needs as well as for capital equipment purchases.
2. Guarantees: Guarantees are issued on behalf of the domestic and international customers in
favour of corporations and government authorities. In addition, as a part of their project
financing activity, they issue guarantees to foreign lenders, export credit agencies and domestic
lenders on behalf of the clients.
3. Bill Discounting: Bill discounting involves financing of short-term trade receivables
through negotiable instruments/ invoices discounting. This has gained considerable importance
in recent past in view of self-liquidating nature.
4. Supply Chain Financing (SCF): SCF refers to trade credit extended by the Bank to
partners involved in comprehensive supply chain process (commodities to cash) commencing
from conversion of raw material into parts/ components, consumed by big manufacturers and
thereafter sold to ultimate consumers through dealers. Core objective is to provide integrated
financial solution to the supply and distribution channels of their corporate clients.
5. Export Credit: ING Vysya provides extensive export credit for pre-shipment and post-
shipment requirements of exporter borrowers in rupees and foreign currencies. They also
arrange discounting of bills under export LCs by overseas banks at competitive pricing with/
without recourse to the exporters.
M. P. Birla Institute of Management. 36
6. Import Finance: import finance (buyers / suppliers credit) under LCs opened by various
Indian banks for import of raw material as well as capital equipment
e. Cash Management Services
Understanding the customer's need for prompt and efficient cash management services, the
bank has come out with a variety of solutions to meet the complex collection and payment
requirements of various businesses.
The bank has field specialists who guarantee a flexible response to customer's needs as and
when required. Expert advice from them also ensure that the products and solutions decrease
interest costs, help manage funds efficiently and keep a trail of transactions through web-
enabled support
4. FINANCIAL MARKETS
Management of risk continues to be one of the most important aspects of running successful
businesses. They mainly concentrate on providing solutions and services for managing
different risks in business, dealing in foreign currency for import/export or short term assets or
liabilities.
a. Market Making & Trading
The Market Making unit provides competitive prices on all major currency and interest rate
products to the client facing Financial Market Sales teams as well as to other market
participants. The product range includes the Indian Rupee, all major currencies, FX Swaps,
Government of India Securities, Corporate Debt and most Rupee Interest Rate benchmarks
including the Overnight Index Swaps and MIFOR. ING Vysya Bank is one of the largest and
most competitive price makers in Indian Rupee.
M. P. Birla Institute of Management. 37
b. Asset Liability Management
The ALM unit of Financial Markets plays a pivotal role in the formulation and
implementation of the bank's Asset Liability Management strategy. The ALM team manages
the banks statutory and investment portfolios. It is also responsible for managing liquidity and
interest rate risk and plays an active role in the management of Transfer Pricing within the
bank.
c. Financial Market Sales
Financial Markets Sales team offers solutions to clients for their varied risk management
needs. The Sales team is geographically distributed across offices in Delhi, Mumbai, Bangalore
and Chennai. Strong client relationships acquired over the bank's 75 years of service in the
Indian markets augment their understanding of customer needs and risk management
requirements.
The sales team is supported at each location by information systems providing comprehensive
and up-to-date market information, tools for analysis and access to research from the ING
Group and ING Vysya Bank. The sales teams use some of the most advanced pricing systems
so as to be able to structure and price across a wide range of products.
To aid this the Sales team is supported by a niche Structuring desk that, apart from helping in
product structuring based on both client needs and market opportunities, helps in efficient
execution of mandates
d. Products and Services
Foreign Exchange Transactions
They offer currency conversions, trading, hedging and investment solutions in G-10 and other
emerging currencies for all business needs. ING Vysya Bank is one of the leading players and
best price makers in the India Rupee Spot market
M. P. Birla Institute of Management. 38
e. Money Market Products
They assist their clients in their liquidity and cash flow management through a number of
instruments, which include
Certificates of Deposit
Corporate Bonds
Commercial Paper
Repurchase Agreements
OTC deposits
M. P. Birla Institute of Management. 39
PRACTICES FOLLOWED BY BRANCHES:
1. Display business hours.
2. Renders equitable and courteous services.
3. Attending to all customers present in the banking hall at the close of business hours.
4. Provides separate 'Enquiry' or 'May I Help You' services with dedicated
�Customer Care Officers� at select branches.
5. Offers nomination facility to all deposit accounts (i.e. account opened in individual
capacity).
6. Displays prevailing interest rates for various deposit accounts.
7. Notifies change in interest rates on advances through specific communication to
borrower.
8. Provides details of various deposit schemes/services of the Bank
9. Issues Demand Drafts, Pay Orders, Mail Transfer, Telegraphic Transfers, etc.
10. Completes the transactions within reasonable time.
11. Provides complaint or suggestion box in the premises of branch.
12. Displays address of Customer Care Unit and Regional office dealing with customer
grievances/complaints.
13. Make available the product literature / brochures of the products / services offered
by the bank.
M. P. Birla Institute of Management. 40
FINANCIAL RESULTS
Significant business performance
The total deposits the Bank stood atRs.13,136 crore as on 30 June 2006,
compared toRs.12,606croreas on 30 June 2005, recording a growth (Y-
on-Y) of 4.20% .
Net Advances stood at Rs.9,578 crore as on 30 June 2006, compared toRs.9,011croreas
on 30 June 2005, recording a growth (Y-on-Y) of 6.29%
Investments of the Bank stood atRs.4,268 crore as on 30 June 2006, compared
toRs.4,319croreas on 30 June 2005.
The number of branches as on 30 June 2006 stood at 392 and the Bank�s ATM network
stood at 123 (including 11 Self Bank ATM�s)
M. P. Birla Institute of Management. 41
Key figures
2005-06 2004-05 % change Net Interest income 481.19
356.76
34.88
Other Income 190.31
122.67
55.14
Total income 671.50
479.43
40.06
Operating Costs 518.79
380.10
36.49
Pre provision profit 152.71
99.33
53.74
Provisions and contingencies 131.19
172.77
-24.07
Profit before tax 21.52
(73.44)
129.30
Provision for tax 12.46
(35.26)
135.34
Profit after tax 9.06
38.18)
123.73
M. P. Birla Institute of Management. 42
M. P. Birla Institute of Management. 43
M. P. Birla Institute of Management. 44
M. P. Birla Institute of Management. 45
M. P. Birla Institute of Management. 46
M. P. Birla Institute of Management. 47
Other Key Initiatives
The Bank opened eight new branches, including the conversion of an existing extension
counter (EC) to a branch, bringing the total number of branches and ECs of the bank to 377
and 56 respectively. The bank also operates 28 satellite offices. With the increased emphasis
on automation, a total of 368 offices are now connected to the networked core-banking
platform.
The ATM network of the bank reached 114 machines, which is inclusive of nine Self Bank
outlets opened in Bangalore. These Self Banks are a unique concept introduced by ING as a
first in the country.
The bank also launched Mi-remit, an Inbound Money Transfer Service from the U.S.A. The
service offers a secured online mode of remitting money by any non-resident Indian in the
U.S.A. to a beneficiary in India -24 hours a day, 7 days a week. It is offered by the Bank in
association with
TimesofMoney Limited, which has provided the technology and back-end services.
CRISIL has reaffirmed its rating of �AA+/Stable� for the Bonds raised by the bank. It has also
rated the Certificate of Deposit Programme as �P1+� and Fixed Deposit Programme as
M. P. Birla Institute of Management. 48
SWOT Analysis
Strength
1. Long standing relationships with clients
2. History of reliable banking
3. Has a good product line with various features
5. Has a reliable and secure internet banking facility
6. Merger with ING group has made it India first International bank, world wide presence of
ING, has helped in increasing the credibility of Vysya bank
Weakness
1. No strong brand power
2. People still associate it with traditional Vysya bank and are not completely aware of all its
latest facilities
3. Its presence is mainly concentrated in south India
4. Visibility of the brand is less when compared to other banks
Opportunities
1. The economy is booming and an increasing openness to International firms.
India is having a growing consumer class.
2. The retail banking sector is expected to grow at 120%, so it offers good opportunities to
grow and increase the customer base
3. Tremendous opportunity in Salary accounts of companies to increase transactions
Threats
1. Banks like ICICI, UTI etc. that is all new generation private sector banks
2. Most of these banks offer similar products and facilities and features
M. P. Birla Institute of Management. 49
Part B
M. P. Birla Institute of Management. 50
Study of Below the Line Marketing activities of
ING Vysya Bank
M. P. Birla Institute of Management. 51
Objectives:
The main objective of the study is to gain an insight in to the �Below the Line Marketing
activities of ING Vysya Bank�. To analyze how the marketing of a particular product or
service takes place.
Limitations:
The project is limited by the period of study.
The project is based on the information provided by the employees of the organization and
other primary organizational documents.
Some information is not revealed in this report because of confidentiality to be observed during
the stay at the organization.
The project is based on secondary data.
M. P. Birla Institute of Management. 52
Industry profile �Retail banking
With a jump in the Indian economy banking as a whole is undergoing a change. A larger
option for the consumer is getting translated into a larger demand for financial products and
customization of services is fast becoming the norm than a competitive advantage. With the
Retail banking sector expected to grow at a rate of 30% players are focusing more and more on
the Retail and are waking up to the potential of this sector of banking. At the same time, the
banking sector as a whole is seeing structural changes in regulatory frameworks.
Firstly, it is now undeniable that the face of the Indian consumer is changing. This is reflected
in a change in the urban household income pattern. The direct fallout of such a change will be
the consumption patterns and hence the banking habits, which will now be towards Retail
products. At the same time, India compares pretty poorly with the other economies of the
world that are now becoming comparable in terms of spending patterns with the opening up of
our economy. For instance, while the total outstanding Retail loans in Taiwan is around 41% of
GDP, the figure in India stands at less than 5%. The comparison with the West is even more
staggering. Another comparison that is natural when comparing Retail sectors is the use of
credit cards. Here also, the potential lies in the fact that of all the consumer expenditure in
India in 2001, less than 1% was through plastic, the corresponding US figure standing at 18%.
Competition is fierce, particularly from local private banks such as HDFC and ICICI, in the
business of home, car and consumer loans. So over the past few years, in spite of the entry of
MNCs in many industries, Retail Banking has seen a flurry of panicky exits. In India total asset
size of the retail banking industry grew at a rate of 120% to reach a value of $66 billion in
2005. This growth in retail banking sector has helped in the growth of the overall banking
sector. In future the retail banking industry in India is likely to reach a value of $300 billion by
2010
M. P. Birla Institute of Management. 53
Marketing-Definition
Marketing, as suggested by the American Marketing Association, can be defined as "an
organizational function and a set of processes for creating, communicating and delivering value
to customers and for managing customer relationships in ways that benefit the organization and
its stakeholders.
Two major aspects of marketing are
The recruitment of new customers (acquisition)
The retention and expansion of relationships with existing customers (base
management)
Once a marketer has converted the prospective buyer, base management marketing takes over.
The process for base management
shifts the marketer to building a relationship,
nurturing the links,
enhancing the benefits that made the buyer interested in the first place,
improving the product/service continuously to protect their business from competitive
encroachment
Businesses need to advertise for the following four main reasons:
To raise customer awareness.
To remind customers about existing facilities.
To persuade customers to switch from rival businesses.
To improve and maintain the image of the business.
M. P. Birla Institute of Management. 54
The ultimate aim of these reasons is to attract more customers. The places where businesses
advertise depends on three things
Its audience.
The size of their market.
The size of their advertising budget
From the study of buyer Behavior it was noted that Maslow described the different needs of
human beings as being hierarchical in nature. At the bottom of the pyramid physiological needs
such as hunger and thirst are of primary concern to the individual, almost to the exclusion in
fact of anything else Only when these basic, but important, physiological needs are satisfied
will the individual turn his or her attention to the next category of need in the hierarchy. Their
next need is safety and that of their family. In modern society these needs are reflected in
goods and services such as burglar alarms, car locks and alarms, double glazing, external
lighting, insurance, saving schemes etc
M. P. Birla Institute of Management. 55
Forms of Advertising and their advantages and disadvantages: Newspapers and Magazines
Advantages - A lot of information is known about the people who read certain
papers
Disadvantages - Often not in color and are static and silent
Posters and Billboards
Advantages - High visual impact for a long time and will be seen by a lot of different
people
Disadvantages - Are only seen for a few seconds by drivers and are vulnerable to
weather and graffiti
Media
Television
Advantages - Can reach millions of people all over the country
Disadvantages - Very expensive
Radio
Advantages - Cheaper than T.V, can be used to reach certain listeners
Disadvantages - Sound only, smaller audiences
Communications
Leaflets and direct mail
Advantages - Cheap to produce and distribute
Disadvantages - Are easy to ignore
M. P. Birla Institute of Management. 56
Telephone
Advantages - Direct to customer, interactive, receive instant feed back.
Disadvantages - makes some customers feel their privacy has been violated, sometimes
has negative results.
Websites
Advantages - High visual impact, interactive and can link directly to buying the
product, is relatively cheap
Disadvantages � There is a lot of competition so getting people's attention may be
difficult, needs to be continually updated, can become expensive
M. P. Birla Institute of Management. 57
Marketing Communication Process
In a sense all marketing communication activity is a form of promotion, that is in one way or
another is attempting to promote the interest of the brand, product range and/or company.
Buyers� perceptions of market offerings are influenced by the amount and type of information
they receive as well as their reaction to that information. There must be a good flow of
information between seller and buyer to assist decision-making that precedes a purchase. An
effective marketing communications system also allows feedback from the consumer to the
seller.
Unawareness/ awareness: The advertisement tries to make potential customers aware of the
product�s existence.
Comprehension: The customer recognizes the brand name and also knows what the product is
and what it does; knowledge gained from the advertisement
Conviction: The customer has a firm attitude, preferring a particular brand over all others.
Preferences may have an emotional rather than rational basis.
Action: Some move is made towards purchase, thus the activity has been acted upon.
Action
Conviction
Comprehension
Unawareness
M. P. Birla Institute of Management. 58
Difference between Above the Line and Below the line activity
What differentiates �Above the line� activity from �Below the line activity� is a somewhat
arbitrary division. Below the line activity is loosely classified as non-media advertising.
Basically if an advertisement is submitted to a publication and a commission is paid to the
advertising agency to feature the piece then this is deemed to be �above the line�
communication. If no commission has been paid, for example in the case of a public relations
press release, a trade exhibition or a sponsored sports event, this is referred to as �below the
line� activity. This distinction is accepted by most and is the distinction adopted here.
Various types of ATL activity
Television
Radio
Magazine
Outdoor
Newspaper
Various types of BTL activity
Kiosks
Umbrella stalls
Leaflets
Direct marketing
Event sponsorship
BTL is necessary
When Buyer awareness of the product is low
When Industry sales are rising rather than remaining stable or declining
When The product has features which are not obvious to the buyer
When The opportunities for product differentiation are strong
A new product or new service idea is being introduced.
M. P. Birla Institute of Management. 59
Various products for which BTL is done
Savings accounts like Orange savings accounts, Solo savings account, Saral savings
account, Mpower savings account
Current accounts like Orange current account, Advantage current account, General
current account
Term deposits like Fixed deposits ,Cumulative deposits,Akshaya deposit
Orange Savings Bank Account
Key features
Quarterly Average Balance of Rs. 5000/- to be maintained in the account.
Unlimited ATM transactions on all ING Vysya ATM�s.
Free Unlimited ATM transactions in over 10,000 (Cirrus) ATM�s in India
Shopping convenience at over 74,000 merchant locations, with the ING Vysya
International Debit card.
Zero commission on P.O/D.D up to Rs. 2 lakhs p.a. (calendar year)
Free Personal Accident Insurance Cover of Rs. 3 lakhs for a year.
Free usage of Payable at Par (PAP) Cheques within the overall remittance remittance
limit of Rs. 2 lakhs per annum.
Free Electronic Bill Payment service �at select centres.
M. P. Birla Institute of Management. 60
Free Transfer of funds across all networked branches.
Free Personal Assistance Service - Smartserv at select centers*
Free Statement of Account through E-mail at no charge.
Customer RTGS (Real Time Gross Settlement) transactions at concessional rates.
Free issue of personalized chequebooks.
Mi-b@nk - Internet banking facility
Customer Service Line facility *
Free for life Credit Card based on the applicants eligibility.
Penalty for non-maintenance of the quarterly average balance is Rs.300/- per quarter.
Up gradation from any other savings account of the Bank to the Orange Savings
account at no additional cost.
Benefits
Personal Accident Insurance for Rs.3 Lakhs for a year.
Free unlimited access to 10,000+ other bank ATM�s - enhanced accessibility.
Free Multi branch, Multi-city banking convenience.
Payable at par Cheques.
Free DD�s / PO�s up to Rs.2 Lakh per annum.
Smartserv � Personal Concierge Services
Eligibility
Individuals above the age of 18.
Upwardly mobile tech savvy professionals, entrepreneurs in metros and urban areas.
Guardians on behalf of minors.
Salaried individuals.
Trusts / Societies and Charitable Institutions
M. P. Birla Institute of Management. 61
Mpower savings account
Features
Zero Balance Account
Salary of the employee needs to be credited in to this account.
Joint Account status with one other family member.
Joint Account status with one other family member.
4 Free ATM transactions per month at 10,000 (Cirrus) ATM's. (No carry forward
option)
Shopping convenience at over 90,000 merchant locations, with the ING Vysya
International Debit card.
Free 2 DD's / PO's note exceeding a value of Rs.10,000/- per month
Checkout facility (Temp Overdraft) to an extent of 50 % of the last salary credit
Free PAP Cheques for all employees without restrictions.
Free Transfer of funds across all networked branches. Free Bill Payment service - at
select centers.
Free Statement of Account through E-mail at no charge.
Demat accounts for the electronic custody of shares.
Free issue of Personalized chequebooks.
Mi-b@nk - Internet banking facility.
Customer Service Line facility *
Investment advisory service at select centers. (Currently at all Metro's).ee for life ING
Vysya Credit Card to eligible employees.
Benefits
Zero Balance account - No restrictions on the minimum balance to be maintained
Free access to other bank ATM's four times a month - Enhanced accessibility.
Free Multi branch, Multi-city banking convenience.
Minimum documentation supported by an official communication from the Company
No restriction in the number of transactions in the account
Privileged Customer status for retail loan products
M. P. Birla Institute of Management. 62
Eligibility
The minimum number of employees whose salary accounts are to be opened should be
10
The average salary credit of the employees should be Rs.7500/- per MPower account
Preferably Corporate to have a Current account with ING Vysya Bank.
Solo account
Features
Quarterly Average Balance - Rs.500/- to be maintained in the account
Penalty for non-maintenance of QAB will be Rs.150/- per quarter.
Free International Debit Card, above 18 years of age, which affords shopping
convenience at over 90,000 shopping outlets across the country
Free & unlimited access to all ING Vysya Bank ATM's
Free 30 transactions per annum at HDFC & Corp Bank ATM's.
Free Multi branch, Multi-city banking convenience
Free Fund transfers within the Profile network through E-banking channels
Internet Banking through Mi-b@nk.
Free access to the Customer Service Line.
Personalized Cheque book above 18 years of age.
Smartserv & SMS Alerts at Rs.100/- per annum.
No restriction in the number of transactions in the account.
Bill Pay facility.
Financial transactions at the branch will be charged at Rs.50/- per transaction
In the course of normal operations, if the account is overdrawn, interest will be charged
at 13 % per annum, for the number of days overdrawn
Demat Account for electronic storage of shares
M. P. Birla Institute of Management. 63
Saral savings account Key features
Quarterly Average Balance of Rs.200/- to be maintained in the account.
Penalty for non-maintenance of QAB will be Rs.45/- per quarter.
Free issue of personalized cheque-book.
Free 4 Cash transactions per month at the base branch through withdrawal slips.
Over and above 4 transactions per month, every additional transaction during the month
will be charged at Rs.20/- per transaction.
Additional value added services at a cost
Debit Card - Rs.100/- per annum.
Internet Banking - Rs.100/- per annum.
Customer Service Line - Rs.100/- per annum.
All AAA cash deposits and withdrawals are charged at Rs.50/- per transaction.
Ad-hoc / Additional statement of accounts will be charged at Rs.50/- per transaction.
Up gradation from any other savings account of the Bank to the Orange Savings
account at no additional cost.
Benefits
Very low quarterly average balance.
Basic banking facilities - with a view of financial inclusion.
For the reach of banking facilities to a vast section of the population.
Benefits of technology extended at a negligible cost.
Eligibility
Individuals above the age of 18.
Customers at Rural & Semi Urban locations.
Guardians on behalf of minors.
Any individual.
Trusts / Societies and Charitable Institutions.
M. P. Birla Institute of Management. 64
Orange current Account Features and benefits
Free remittance limit (DD /PO /PAP /RTGS /EFT / NEFT) of Rs.2 crores per month;
power packed feature with potential to save upto Rs.4.8 lakhs per annum.
Free collection of outstation cheque instruments are to be lodged with ING Vysya Bank
branches at drawee locations, directly.
Free unlimited Net Banking for checking balances in accounts
Free unlimited account to account Funds Transfer in networked branches
Easy anywhere cash deposit and withdrawal (upto specified limit)
Free cash pickup and delivery including access to ING Vysya Bank's state of the art
"Self Bank"
Free personalized cheque book with "At Par" cheque leaves
Free SMS alerts at select locations
Avail safe deposit locker facility (where available) on a preferential basis
Free ATM cum debit card with free access to any ATM of any bank on cirrus network
Free 24 hours Customer Service Line (toll free)
Multiple channels to access your account.
Free standing instructions facility for regular payments and many more� Eligibility
Resident Individuals
Hindu Undivided Families
Sole Proprietorship Firms
Partnership Firms
Limited Companies
Trust Accounts
Association / Clubs / Societies
* It is needed is to maintain an average balance of Rs.1,00,000/- per quarter
M. P. Birla Institute of Management. 65
Advantage current account
Feature and benefits
Free remittance limit (DD/ PO/ PAP/ RTGS/ EFT/ NEFT) of Rs.50 lakhs p.m.; power
packed features with potential to save upto Rs.4.8 lakhs p.a.
Free collection of outstation cheque instruments are to be lodged with ING Vysya Bank
branches at drawee locations, directly.
Free unlimited Net Banking for checking balances in accounts
Free unlimited account to account Funds Transfer in networked branches
Easy anywhere cash deposit and withdrawal (upto specified limit)
Personalized cheque books and personalized payable at par cheques
Free SMS alerts at select locations
Free standing instructions facility * for regular payments
Free ATM cum debit card with access to any ATM, of any bank * on cirrus network
Avail safe deposit locker facility (where available) on a preferential basis
Free 24 hours Customer Service Line (toll free)
Eligibility
Resident Individuals
Hindu Undivided Families
Sole Proprietorship Firms
Partnership Firms
Limited companies
Trust accounts
Association clubs
M. P. Birla Institute of Management. 66
General current accounts
Features and benefits
Access your account from any of the networked branches across India
Deposit cash at any of the branches (networked) across India
International debit card cum ATM card to access your account from the wide network
of ING Vysya bank ATMs and self banking across the country
Enjoy FREE 24- hour Phone Banking and Net Banking facilities that helps you check
your balance and other details
Attractive rates for inter-city/inter-branch transactions (Please refer Service Charges
chart for details)
Utilize a safe deposit locker (available at selected branches) for your valuables and
important documents
Personalized cheque book for enhanced security
Eligibility
Resident Individuals
Hindu Undivided Families
Sole Proprietorship Firms
Partnership Firms
Limited companies
Trust accounts
Association clubs
M. P. Birla Institute of Management. 67
Fixed deposits
Tenor based Rate of Interest � Higher interests can be accrued for longer periods of
deposits
Compounded Interest can be earned by reinvesting the principal amount along with the
interest earned during the period.
Premature withdrawal allowed at a nominal penalty
Option to place deposits in multiples of Rs.1000 as units under Vysunits, enabling
withdrawal as per need, in multiples of Rs.1000.
Higher rate of interest on Fixed Deposits for Senior Citizens
Option to draw interest by way of DD / PO / Credit to own SB account with ING Vysya
Bank, Monthly (at a discount) or Quarterly, as per choice.
Loans upto 90% of the deposit would be available at 2% above the underlying interest
rate on Fixed Deposit.
Nomination facility is available
Free transfer of deposit between branches is available.
Eligibility
Resident Individuals
Hindu Undivided Families.
Sole Proprietorship Firms
Partnership Firms.
Limited Companies.
Trust Accounts / Associations / Clubs
Minors
An Initial deposit of Rs.10000 is required to open a Fixed Deposit
M. P. Birla Institute of Management. 68
Tenor
Minimum 15 days to maximum of 10 years. For deposit above Rs.15 lakhs, the minimum period is 7 days.
Interest rates A. Domestic term deposits
Interest rates (%) per annum for deposits from 01.09.2006
Period For deposits below Rs.15 lakhs
For deposits of Rs.15 lakhs & above & below Rs.1 crore
7 days to 14 days NIL 3.50%
15 days to 45 days 4.50% 4.50%
46 days to 90 days 5.00% 5.25%
91 days to 180 days 6.25% 6.50%
181 days to 224 days 6.50% 6.75%
225 days to one year 7.00% 7.00%
Above one year to less than two years 7.00% 7.00%
Two years to less than three years 7.00% 7.00%
Three years to ten years 7.25% 7.25% For deposits of Rs.1 crore & above, the rates are furnished by the Corporate Office from time to time depending upon the market conditions.
M. P. Birla Institute of Management. 69
The Country operations are divided into 12 regions namely 1. Anantapur 2. Bangalore 3. Chennai 4. Coimbatore 5. Delhi 6. Ernakulam 7. Hubli 8. Hydrabad 9. Kolkata 10. Mumbai 11. Vijaywada 12. Vishakapatnam According to category wise like Metro, Urban, Semi Urban, Rural. There are a total of 422
branches included Extension Counters
12 regions,422 branches
22%
34%
24%
20%
Metro
Urban
Semi Urban
Rural
M. P. Birla Institute of Management. 70
The ideology behind BTL
The main purpose behind BTL is 2C�s that
1. Collect the leads
2. Convert the leads
Reach out maximum people across branches.
Involve the branch people and sales team actively in prompting any new offers and in
increasing the existing customer base
Target a particular segment with the aim of raising a desired set of responses within that
market segment. That is Concentrate only on Solo accounts, when ever the Crowd
around the activity centre is college going or consists of only youth.
Measure the effectiveness of the activity. The effectives of the activity can be measured
by the response generated
Helps in cross selling, that is the activities, showcase various products of ING Vysya
which a customer can choose according to his or her needs.
Increase the customer base. This is the main intention behind BTL ,is to increase the
customer base
Collect the Leads
Convert the leads
M. P. Birla Institute of Management. 71
Regions where BTL activity has been conducted
0
1
2
3
4
5
6
A n a n t a p u r C o i m b a t o r Hu b l i Mu m b a i
N o o f A c t iv it ie s
N o o f A c t iv it ie s
Some of their BTL activities conducted
1. Umbrella stalls
2. Stalls at exhibitions
3. Campaigns for lead collection
4. Distribution of fliers and leaflets
5. Customer Get customer Campaign (Ongoing campaign)
6. Innings with Ponting Campaign (Forthcoming Campaign)
M. P. Birla Institute of Management. 72
1. Umbrella stalls �The sales team puts up the umbrella, ING Vysya, at strategic
locations to solicit enquires and they mainly educate the public about the product
offerings of ING Vysya. They collect the phone numbers of interested people for
following up on the leads
Khar team RMZ Chennai team a. Conducted promo at Khar Education Society, Mumbai on 14th Aug 06. 55 leads of solo and
4 OSB leads were captured. They conducted Promos for 2 days for FD's and OSB near
Khar Station & Other Banks ATM's through which they gathered 30 leads and on spot
closed 2 CA & 2 OSB.
b. Did a promotional activity at RMZ Millenia IT Park, Chennai. This is a recently opened IT
park where the likes of Aviva, Cognizant, Ford and EDS etc have opened their offices.
Stall : umbrella stall
Leads : Collected 50 enquiries
Accounts opened : 5 OSB
M. P. Birla Institute of Management. 73
2. Stalls at exhibitions�
The stalls were put up strategically at the various exhibitions in various cities, generally in
these exhibitions provide a very good opportunity to collect leads and also increase accounts.
a. Participated in Ideal Home Exhibition held in Rathinavel Gounder Kalyana Mandapam
from 21/07/06 - 23/07/06 - 3days .Good numbers of leads were generated at all locations,
where the spot conversions went up to 20 accounts.
On the spot opening : 15 OSB, 3 CA & 2 Solo.
At the exhibition in salem Bhuvaneshwari Trade exhibition b. Bag an Orange Campaign at Bhuvaneswari Trade Fair's Exhibition inauguration on 5th
April
2006.
Crowd : Huge crowd due to pilgrims visiting the temple
Total walk-ins : 419
Prospective Leads : 166 (81 Tirupathi), 85 (other places)
Accounts opened : 30 OSB, 5 Current Accounts
M. P. Birla Institute of Management. 74
3. Campaigns for lead collection: In this type of activity, the main aim is to collect leads, that
is informing people about the various products of ING Vysya and Benefits of Products. The
sales team is very active in this type of campaign because they need to go and approach people
and get the people to be interested in the ING Vysya�s product offerings. Some times when
ever they have this kind of campaign they also conduct a lucky draw of the names and offer
any ING Vysya take away. So as to increase the number of people to participate, the only thing
they expect is to get the lead form filled.
Activity at APMC Market (Vashi) on 5th August. They called the activity as CARPET
BOMBING. The entire sales team went from shop to shop explaining the current account
products and got good response. Fair numbers of leads were generated at the locations
Segment : Traders and business.
Leads : Collected 180 enquiries
Accounts : 7CA, 10 OSB.
M. P. Birla Institute of Management. 75
4. Distribution of fliers: In this type of activity at Vassi, is only to increase the visibility.
They undertook this activity on August 15 and distributed sweets and flags and Fliers
(Information of all ING Vysya products and latest offers).
1. Vassi team did a stall activity and distributed flags and chocolates and fliers.
Segment : General Public
Activity : distributing fliers and flags
Accounts : 6 OSB, 5 OCA (Vassi)
2. Indore team have done promo at Institute of Engineering Science & Management
distributions of fliers was the main agenda and they concentrated only on Solo accounts in this
activity
Segment : Students
Activity : distributing fliers
Accounts : 70 Solo, 6 OSB
M. P. Birla Institute of Management. 76
5. Customer get customer Campaign (Presently on going)
This campaign is aimed at generating leads from existing customers for the Orange Savings account all they need to is to give the names and valid telephone numbers of any three people who would be interested in opening an Orange Savings Account and they automatically qualify for the reward
M. P. Birla Institute of Management. 77
6. Innings with Ponting Campaign (Forthcoming Campaign)
They have an activity with Ricky Ponting in cities of Jaipur, Chandigarh, and Mumbai. Starting
October 11th 2006 which is happening with the main purpose of collecting leads, increasing
brand visibility.
As a part of this activity they have various events happening
1. Leadership meet with Ricky Ponting �Rendezvous� with Ricky
2. Cricketing tips to selected children (children are given a lead slip and asked to fill up, lucky
draw is taken out and 150 lucky children are selected)
M. P. Birla Institute of Management. 78
Sales process
They have a dedicated call center and a toll free line for the customers and potential customers to call. The leads that are collected through various BTL activities are given to the call center teams to do the follow-up. Here they have a concept known as lead nurturing where they nurture the leads that are generated by informing them about the latest offers about various products and various services and features available and encourage them to try a relationship with them. Thus they convert the leads into customer
Lead conversion
Lead Nurturing
Lead Generation
M. P. Birla Institute of Management. 79
Tangible Benefits of BTL activities
Minimal cost Vis-à-Vis Hoarding can be extremely cheap when compared with the cost of hoardings if they have to be put up at strategic locations.
Increased visibility, These BTL activities help in increasing the visibility because they take place at Strategic places and important events.
Word of mouth publicity is generated at every activity Sales Team is motivated to perform better Easily measured response, the response to the activity can be measured easily Quick achievement of objectives , that is the results are immediate Flexible application, The activity can be done as when required .That is when ever a
major event is happening ,A stall can be put up Realistic Facts about BTL
They should fit in with broader corporate objectives. They should be realistic, taking into account internal resources and external
opportunities, threats and constraints. They should be universally known within the company, so that everyone can relate
them to his or her own work and to the broader corporate objectives. They need to be flexible, since all business decisions have to be made in conditions
of partial ignorance. They should be reviewed and adapted from time to time to take account of changing
conditions Factors to be considered for BTL
The amount to be spent on a particular campaign The content and presentation of the advertisement The most appropriate media The frequency of display of advertisements or campaigns Any special geographical customisation of effort The best methods of evaluating the effects of the advertising.
M. P. Birla Institute of Management. 80
Recommendations
1. Presently the activities are concentrated in metros and urban areas only. They should
extend these activities to rural and semi urban areas.
2. They can have a solo month an orange month type of activity where the sales team can
concentrate on a particular type of a/c only. Or alternatively can have a dedicated team for
a particular account which can completely concentrate on the particular target segment
which they want to target.
3. They should have a system in place to check how many of the leads generated are actually
converted into sales. For this they would have to document all the leads collected after a
particular activity before giving the leads to the call center team
4. Concentrate on only those types of activities which have maximum conversions.
5. Document the reasons which the leads, which are not getting converted, are giving for not
starting a relationship with ING Vysya Bank. E.g. X says that �I like this particular feature
of my bank and I am unwilling to change my bank�.
6. Have activities which involve existing customers that is more activities like customer get
customer campaign.
7. They have launched a new facility known as self bank, which is a unique concept and they
should market it aggressively, and include its fliers and information when ever they
undertake an activity
M. P. Birla Institute of Management. 81
Bibliography
Websites
1. http://www.ingvysyabank.com 2. http://www.moneycontrol.com 3. http://economics.about.com/cs/finance/a/india_banking.htm 4. http://www.google.com. 5. http://www.banknetindia.com/banklinks.htm
Books 1. Principles of Management by Philip Kotler